Tractor Supply Company (TSCO)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 397,071 | 202,502 | 878,030 | 1,341,760 | 84,241 |
| Short-term investments | US$ in thousands | — | — | — | — | 558 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,177,080 | 2,376,210 | 2,064,840 | 1,743,800 | 1,247,600 |
| Quick ratio | 0.18 | 0.09 | 0.43 | 0.77 | 0.07 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($397,071K
+ $—K
+ $—K)
÷ $2,177,080K
= 0.18
The quick ratio of Tractor Supply Company has exhibited variability over the past five years. In 2023, the quick ratio stands at 0.18, indicating that the company has $0.18 in liquid assets available to cover each dollar of its current liabilities. This represents an improvement from the previous year, where the quick ratio was at 0.09, suggesting that the company has enhanced its ability to meet short-term obligations using liquid assets.
Comparing to 2021 when the quick ratio was 0.43, the current ratio has dropped significantly in 2023. It peaked in 2020 at 0.77, reflecting a significant cushion of liquid assets to cover short-term liabilities. Conversely, the quick ratio was notably low in 2019 at 0.07, indicating a limited ability to meet immediate obligations using liquid assets.
Overall, the trend in the quick ratio for Tractor Supply Company shows fluctuations, suggesting varying levels of liquidity and short-term financial health over the past five years. Investors and stakeholders may monitor this ratio closely to assess the company's ability to fulfill its short-term financial commitments.
Peer comparison
Dec 31, 2023